5/18/12

Commodities and the business cycle

Commodities have been plunging since March 2011 (click on the chart to enlarge it).

Yields have been declining since then. Commodity sensitive stocks have performed poorly since then. The dollar has strengthened since then. The economy (orders, industrial production, inventories) has grown more slowly since then. Some stocks, however, have performed very well since then. The pattern? This is the phase of the business cycle unfriendly to commodity sensitive stocks.

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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